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Why, What, When and Where to Direct Mail
WHY
Lightspeed Research finds that 42% of marketing professionals say direct mail is the best advertising vehicle for proving ROI, but following direct mail in a strong second place is the Internet with 19% of professionals telling Lightspeed that they think the Internet is the best medium for measuring ROI.
While email marketing efforts are efficient, they are also often negatively targeted by random recipients as SPAM. To launch an email campaign you need email addresses, and one of the most simple and ethical methods of collecting email addresess from a demographic is to use direct mail campaigns that urge recipients to visit your website for listings, community information, and other incentives. Once people arrive at your site, you can gather email addresses via an opt-in method. This benefits you by increasing your site traffic, generating leads, and ensuring you have a receptive email base for future email marketing.
WHAT
Consider the following when including direct mail in your marketing plan:
Emphasize your value and your unique selling proposition.
Always use color images in the design of your mailing pieces. Using colors consistently projects a professional image while differentiating your service and brand.
Include call-to-action information in your marketing pieces because it encourages high response rates. This information includes your telephone numbers, fax number, email, and most importantly, your website address! Don't forget to give incentives to visit your site, such as offering more information on a featured listing, giveaways, and home calculators. Ask yourself, "What can your site offer a client that others cannot?"
Don't forget to follow-up and ask your prospect if they received your direct mail piece and if they are in the market to buy or sell a home. Ask them if they know of anyone looking to buy or sell a home. Referrals from prospects are as common as those gathered from existing customers.
WHEN
As quoted in Greg Herder's 'How to Build a Successful Direct Mail Campaign in the Internet Age', "research shows that in today's marketplace you must have three exposures a month for a minimum of six months to get your name into the conscious awareness of a prospect". If you're farming in a new area, mail one piece per week for eight weeks. Based on this schedule Herder claims 40% to 60% of the people in your area will know your name.
WHERE
When defining your farming area, consider your annual listing target and the turnover rate in the area. If you choose an area with 2,000 to 3,000 names you will likely satisfy typical listing target requirements.
According to NAR, "most households move within ten miles of their current location while 20% move at least 50 miles". Keep this in mind when mailing to your farm. Take advantage of list service options that allow you to radius-search around a home you've just listed or sold.
Consider area equity potential based on age-group demographics. If, in your farm area, home purchases typically require a $50,000 down payment, select an audience with equity of $80,000 or more. According to the 2001 NAR Home Wealth Effect Survey "households aged 50 or older have a median equity of $80,000". So, when you select your list include 50-year-olds in your target mailing.
Consider qualifying income when choosing your demographics. According to NAR and their Housing Affordability Index, during March of 2003, $36,768 was the qualifying income for a single-family home median-priced at $163,100. If you have homes priced in this range, use this income bracket when searching for direct mail prospects. Or, use qualifying tools to determine the income levels for other-priced homes.
For other direct mail information, visit www.usps.com/directmail. This site is full of direct mail tips and campaign suggestions.
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